However its introduction was suspended after several professional organizations and private individuals challenged the plan in court.

But on Friday the Swiss Federal Court in Lausanne rejected the appeal, saying that the proposed minimum wage of 20 francs “conforms to the constitutional principle of economic freedom and to federal law”.

In a statement, the court said the canton had the right to introduce social policy measures, and that the introduction of a minimum wage was in part motivated by social aims.

The minimum wage aimed to guarantee every worker a decent standard of living without having to resort to social welfare, therefore fighting against the phenomenon of ‘working poor', it said.

However to ensure that the minimum wage does not encroach upon economic freedom, the level should be set relatively low, which is the case here, it said.